SHAH ALAM, Feb 25 — Kumpulan Perangsang Selangor Bhd (KPS) revenue jumped 23 per cent year-on-year to RM1.3 billion for its fiscal year 2021.
KPS said its manufacturing business contributed 87 per cent to the group’s revenue, growing by 28 per cent to RM1.2 billion from RM898.3 million in the corresponding period last year.
While its trading and licensing businesses contributed 9 per cent and 3 per cent or RM121.9 million and RM35.5 million, respectively.
Contribution by its trading business was slightly lower by 2 per cent than last year, while the contribution from the licencing business was up slightly by 1 per cent.
KPS said its infrastructure business and property investment contributed 1 per cent each during this period, with RM9.6 million and RM8.9 million, respectively.
The group’s operating profit more than doubled to RM104.5 million from RM51.0 million, supported by other income contributed by the gain on disposal of properties amounting to RM14.8 million, higher forex gain and lower impairment loss on assets.
However, KPS’ bottom line was offset by an 80 per cent lower share of profits from associates but was cushioned by a 21 per cent improvement in finance cost.
The group’s profit before tax and zakat (PBTZ) has increased by 53 per cent to RM87.6 million from RM57.3 million. In contrast, its profit after tax and minority interests (Patami) leapt 65 per cent to RM56.2 million from RM34.1 million posted last year.
KPS’ manufacturing business, which is represented by Toyoplas Manufacturing (M) Sdn Bhd (Toyoplas), Century Bond Bhd (CBB), CPI (Penang) Sdn Bhd (CPI), King Koil Manufacturing West LLC (KKMW) and King Koil Sales Inc (KKSI), recorded 5 per cent revenue growth Year-on-Year (YoY) contributing RM289.6 million, or 86 per cent to the group’s revenue, as compared to RM275.7 million in the corresponding quarter last year (Q4 20).
Toyoplas contributed RM118.1 million and was the highest revenue contributor for the group. But the global shortage of electronic chips (IC) and lower global freight capacity continued to disrupt its supply chain, resulting in the 9 per cent reduction in Toyoplas revenue for the quarter under review.
On the contrary, revenue contribution from the other manufacturing businesses inched up. CBB contributed RM65.6 million, which increased by 7 per cent, driven by higher traction from the offset carton and paper divisions. CPI contributed 5 per cent more, at RM52.3 million. KKMW and KKSI added the remaining revenue of RM41.9 million and RM11.7 million each, or 30 per cent and 350 per cent, growth respectively, due to strong turnaround by new and existing customers.
Aqua-Flo Sdn Bhd (Aqua-Flo) revenue contribution was 13 per cent higher at RM35.1 million due to higher water meter sales. At RM35.1 million, Aqua-Flo contributed 10 per cent to the group’s revenue.
KPS licensing business, King Koil Licensing Company LLC (KKLC), contributed RM8.9 million. KKLC grew its revenue by 3 per cent from RM8.6 million in the corresponding quarter last year, supported by steady traction from international royalty fees. It contributed 3 per cent to the group’s revenue this quarter.
While the remaining revenue contribution of RM2.3 million was from property investment, mainly from net rental income at Plaza Perangsang and Wisma SAP.
Supported by a higher contribution of the core operations from the manufacturing business, the operating profit leapt to almost RM24.0 million, doubled from last year’s RM11.7 million.
But the share of profits from associates due from Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd (SPRINT) and NGC Energy Sdn Bhd (NGC Energy) came in much lower this quarter, at RM3.6 million and RM0.9 million, respectively.
Exacerbating the lower traction this quarter, understandably, was the absence of an extraordinary RM18.6 million gain from the securitisation of remaining proceeds from Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) disposal posted in Q4’20.
During the quarter, KPS managing director and group chief executive officer Ahmad Fariz Hassan said they felt the impact from the supply chain constraints, as the bottleneck in the shipping containers, the global shortage of IC chips, and raw materials and capacity constraints continued to push input costs up.
“Nevertheless, our core business showed resilience, proven by delivering a set of commendable results. Amid ongoing supply chain constraints, our team executed our value creation strategy diligently for sustainable growth of the group, navigating resiliently through the challenges and reacting swiftly to overcome the challenges in the operating environment,” he said.
Ahmad Fariz also thanked all the stakeholders for their trust and support and the management team and all its employees for their commitments, contributions, and resilience throughout the year to have achieved these commendable results.
Speaking on the group’s prospect for 2022, he said as KPS progress, it shall remain committed to delivering value to its stakeholders by focusing on strategic execution of the value creation plans to strengthen further our fundamentals and, ultimately, profitability and sustainable growth.
“At the same time, we will continue with the realisation of our long-term strategic goals that include further improvement in operational efficiency, penetration into new market segments and expansion of product mix and services at all subsidiary companies, to gain more ground and are poised to ride the recovery wave”, he said.
